Among household expenses, your vehicle and auto insurance costs likely rank highly. You don’t want to not carry auto coverage. Going without could put you at unfair financial risks. Nonetheless, you don’t want to pay excessive costs for your auto policies. If you can’t afford your coverage, you may not be able to pay for it, which could lead to more problems.
There are ways that you can take steps to keep your auto insurance costs as low as possible. Indeed, you can often keep your premiums affordable without sacrificing coverage.
1. Combine Your Auto Insurance Policies
You might own more than one car—perhaps one for you and one for your spouse. Many auto insurers offer multi-vehicle policies. This allows drivers to insure both cars on one policy. Multi-vehicle policies usually allow drivers to include all drivers in their households on the coverage. Drivers may also be able to insure each vehicle with certain unique coverage levels. With a multi-vehicle policy, drivers might be able to avoid paying multiple premiums.
2. Set a Higher Deductible
Auto insurance usually comes with a deductible. This is the price you agree to pay for repairs before your insurance covers the claim. By increasing your deductible, your insurer may be able to offer you lower premiums. This is because the insurer may wind up having to pay less money in the event that you make a claim.
3. Compare Insurers
If you work with an independent insurance agent, you can often compare the policies that multiple insurers offer. Some companies may offer essentially the same coverage at lower costs than others. Furthermore, insurers often offer drivers various discounts, such as accident-free savings, to help them save on coverage. By comparing insurers, you can often find one that will maximize your discounts.
Talk to your insurance agent about the ways you can keep your policy prices low. But never forget to tell them about the coverage you think you need. Your agent can usually help you find the most affordable policy with your desired coverage elements.